An international racket that swindled ₹700 crore from unsuspecting investors has systematically spread its operations across Kerala. Posing as a legitimate defence enterprise, the entity deployed an aggressive multi-level money chain model that transformed earlier victims into incentivized recruiters to rapidly grow its local footprint. Beginning in 2025, the organization systematically targeted high-net-worth individuals across the state with false promises of lucrative transatlantic ventures before transitioning them into commission agents.
Tiered Commission Scheme Driven by Substantial Cash Multipliers
The operational matrix of the shell entity relied on a structured pyramid framework that rewarded existing investors heavily for introducing new victims. When a member introduced a new recruit, they received an upfront commission equivalent to 20 percent of the amount deposited by that person as an Earnest Money Deposit (EMD). This payout structure escalated to 25 percent on the investment made by a second recruit, and reached 30 percent for a third. A recruitment cycle was considered complete once three new investors had been brought into the fold.
The fourth recruit would then mark the commencement of the next cycle, with the identical commission percentages repeating themselves. Several early investors completed five or six cycles, drawing individual commissions running into crores of rupees and subsequently securing permanent employment within the fraudulent firm. The financial devastation left behind by this structure includes a glass merchant from Thrissur who poured ₹5.25 crore into the entity across 15 separate transactions between May 16 and October 17, 2023. In another case, a Kozhikode resident liquidated his entire real estate holdings and home to invest ₹2.5 crore. The scale is further illustrated by a single transaction where an agent received ₹12 crore in commission for facilitating a ₹40 crore investment from a New Delhi businessman identified as Vijay Kasa.
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Secret Oaths administered under Bogus Defense Narrative
The shell company operated under the acronym VPVV Techno Construction Limited, a name derived from its original founders, Vinod Varrier, Pradeep Kumar, and Venkitta Venkit. Over time, Varrier and Kumar distanced themselves from daily corporate management to position Venkitta Venkit as the clear chairman and public face of the operation. Recruits were led to believe that a mysterious mastermind known only as ‘Doctor Saab’ served as the company’s ultimate patron and spiritual guide.
To convince victims to hand over their funds, the syndicate asserted that VPVV had been entrusted with highly confidential weapons manufacturing projects for both the United States and Indian governments. Recruits were told that all project documents fell under the classification of ‘official secrets’ of both nations and could not be shared externally under any circumstances. To cement this illusion, new members were forced to take a formal oath of secrecy administered directly by ‘Doctor Saab’. Along with the defense contract narrative, the firm initially lured victims with commitments of global profit sharing, lifetime US visas, American Green Cards, and lucrative career opportunities in the United States.
Retired Police Officials Implicated in Deflecting Investigations
The corporate fraud has taken a critical turn as two retired Kerala Police officers of the rank of Superintendent of Police (SP) stand accused of playing a pivotal role in maintaining the multi-level marketing operations. Complainants have recently furnished detailed evidence to central investigative agencies alleging that these former high-ranking officers used their lingering administrative influence to actively derail local police inquiries when victims initially attempted to file cases. The evidence purports to show that the retired SPs systematically worked to dilute the criminal charges invoked in regional First Information Reports (FIRs).
Faced with institutional resistance at the local level, the complainants have moved the court to demand a comprehensive Central Bureau of Investigation (CBI) probe into the entire multi-state racket. Concurrently, a formal complaint has been filed before the Registrar General of the High Court against a practicing advocate. The petition alleges that legal proceedings relating to the scam were deliberately and systematically delayed within the judicial system to give the operators time to maneuver.
